Panaji: The Government of Goa has announced a One-Time Settlement (OTS) Scheme to provide relief to beneficiaries of the Interest Free Education Loan (IFEL) Scheme by waiving penal interest. The scheme will come into effect from February 1, 2026, and will remain valid till July 31, 2026.
The Interest Free Education Loan Scheme has been implemented by the Goa Education Development Corporation (GEDC) since 2005 to support students pursuing higher education. While a large number of beneficiaries have regularly repaid their loans, several have defaulted due to unavoidable circumstances and were consequently charged penal interest.
To address this issue, the government has introduced the OTS scheme to provide much-needed relief to such beneficiaries. Eligible loan holders must apply within the scheme period and clear their dues as per the prescribed conditions.
Settlement Details:
Scenario 1: Beneficiaries Beyond Payback Period
• Within 2 months: Outstanding principal + 5% interest
• Within 4 months: Outstanding principal + 10% interest
• Within 6 months: Outstanding principal + 15% interest
Scenario 2: Beneficiaries Within Payback Period
• All unpaid EMIs must be cleared within three months
• Entire penal interest will be waived
• Future EMIs must be paid as per schedule
Beneficiaries who have already repaid the principal amount and only penal interest remains pending will have their cases closed. However, penal interest already paid will not be refunded. Such beneficiaries may apply for a No Dues Certificate from the Corporation.
As per official estimates, around 1,402 defaulting beneficiaries are expected to benefit from this scheme, with a total outstanding amount of approximately ₹21.30 crore.
The scheme aims to provide financial relief to students and encourage loan closure while strengthening recovery under the IFEL programme.
